Economic Index: What is the current state of franchise businesses?
In March of 2012, the International Franchise Association launched the Franchise Business Index (FBI). Developed by IHS Global Insight, the FBI is designed to provide more consistent and timely tracking of the growing role of franchise businesses in the U.S. economy. Strong gains in the Spring and July have brought the index to a new all-time high although growth slowed September.
“Measuring the strength of the franchise industry through the Franchise Business Index provides another indicator of the health of the economy as a whole. While the index shows we are moving in the right direction, more certainty in the tax and regulatory environments would help franchise businesses grow faster, creating more jobs and economic output at the local, state and national levels.”
– Stephen J. Caldiera, IFA President and CEO
The Franchise Business Index combines indicators of the growth or decline of industries where franchise activity has historically been concentrated with measure of the demand for franchise business services and the general business environment. The components include:
– Employment in Franchise-intensive Industries
– Number of Self Employed
– Unemployment Rate
– Consumer Demand in Franchise-Intensive Services
– Small Business Optimism Index
– Small Business Credit Conditions
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